Upper circuit stock: Wanbury with low P/E, now on verge of breakout

Several pharma stocks are rallying and Wanbury is just another lesser-known name that is attracting investors. According to BSE website, the company is trading at a P/E of 4, with a market cap (free float) of Rs 107 crore. 

Wanbury got locked in at its upper circuit on Thursday and has jumped almost fourfold in the past one year. It has two USFDA approved plants along with a basket of over 13 API products. It is also one of the largest manufacturers of Metformin with over 8,500 tons per year. The micro-cap pharma company has a larger customer base in Europe and US for Tramadol vs Sertraline (API). With exports to over 50 countries, the company is monetising its two USFDA approved multi-product API facilities. 

In the formulations space, though Wanbury has a strong presence in gynaecology, orthopaedics, anti-diabetic, analgesics, etc. 

Trading at near Rs 100 per share, the stock is close to its resistance level and at the same time, it’s also on the verge of a breakout.